The share price of Sterlite Optical Technologies Ltd plunged to all-time low of Rs 85 on the BSE following the company's disappointing results for the quarter ended June 30, 2002. The stock dipped by 6.95 per cent to Rs 80.95.
While the volume on the BSE was 4.68 lakh shares, on the NSE about 5.53 lakh shares were traded. Between July 8 and July 31, the stock lost 33 per cent to Rs 85 from Rs 114.95.
Sterlite Optical unveiled its first-quarter results on Wednesday. For the quarter ended on June 30, 2002, the company posted Rs 14.09 crore loss compared with a net profit of Rs 67.68 crore in the corresponding quarter of the preceding fiscal. Total income also declined by 86.3 per cent to Rs 23.84 crore (Rs 173.90 crore).
Analysts had expected the company to post a net profit of Rs 23.8 crore for the quarter, a 65 per cent mark-down from the corresponding quarter of the previous fiscal. They also expected a 86.3 per cent decline in top line at Rs 154.8 crore.
Sterlite Optical designs, develops and manufactures optical fibre and optical-fibre cables. It derives a substantial portion of its revenues from exports to the US.
The global market for optical fibre and optical-fibre cables continues to be weak with substantially lower optical fibre deployment, especially in the US, the largest market.
Pricing and margins for the company's products continue to be under pressure. After a steep decline, optical fibre prices are stabilising to some extent albeit at much lower levels and a significant improvement in the near term seems unlikely.
Analysts said the company's fortunes will not improve till the prices in the global market rise. As on June 30, 2002, promoters' holding in the company was 35.6 per cent, while public and institutions held 39 per cent and 15.5 per cent, respectively.
